I know this isnāt what is meant by āStupid,ā but maybe others will consider it a stupid question.
Iām young, and very much not-wealthy. Iām pretty inexperienced and uneducated regarding financial matters. If I have a loan (car payment, mortgage, whatever), is it smart to make biweekly/2x a month payments on it? I saw something that somewhere that said making these payments more frequently results in less interest being paid over time.
For the record, Iām talking about paying half a monthly payment twice a month. Like doing $200 on the 1st and $200 on the 15th, instead of just $400 once a month. NOT making two full payments of $400 twice in a month.
Again, maybe this is a stupid question, but I heard it and wanted to see if it was a ārealā thing.
@Bauber, @blshaw, Iāve seen you guys talk about money stuff a lot, haha.
Usually interest on car loans compounds daily, so you will save some by doing that.
But, it will not be that much of a savings unless the car is really expensive and rate really high.
In addition to interest rates and everything else @Bauber mentioned, it will also depend on the specific terms, duration and type of loan. If it is a simple interest mortgage, anything above your monthly payment comes out of the principal, aka the original amount borrowed. The principal is what your interest compounds off of.
Even something like making 13 payments instead of 12 every year can shave a LOT off of the interest paid and you will pay it off years sooner. It will also get you out of PMI sooner if youāre paying that. Even if you canāt manage that much now, every dollar above your monthly payment adds up on a 30 year simple interest mortgage. The sooner you shave it off, the better.
It all depends on the agreement signed. Tās and Cās.
This. Plus on a two week pay schedule vs monthly you will effectively make an extra payment a year. Assuming you meant every two weeks and not bi monthlyā¦ This is because most months are 30-31 days and your equal payment will be 14x2=28. Thats an extra payment each year. It wonāt make a drastic difference, but is it an effective method when on a larger scale. Point being is, itās probably worth doing every two weeks but not as effective bi monthly.
That canāt go badly. I mean how could it?
@Bauber, @twojarslave, @blshaw - little late to say this, but thanks guys! Appreciate the advice.
In general, when something like this is referenced itās because the frequency of payments will result in more payments than youād make otherwise. Itās a strategy used typically for a 30-year mortgage and can make a difference, but not like youāre thinking:
I wouldnāt break my payment up unless youāre using an autopay system or are very good at monitoring your payments. To easy to miss one.
This is just nuts. 
like spiriting away to whatthefuckland.
Even his who ever that is looks puzzled back there.
This theory has been around for awhile.
Oo de lally.
If you think itās stupid, youāre not ātaking a trans studies approach.ā
Dude is accusing 1500 year old graves of faggery.
Well, he did it. He found the thing. Thats actually weaker than changing your identity to beat up women and win their medals.
Orā¦these ātransgendersā wereā¦and hear me outā¦female warriors? You know, those that have taken up positions of their deceased fathers/husbands to rule the clan/tribe/extended family that we have ample historical evidence for?
Whatās even more ironic is that with the trans craze theyāre erasing well documented historical legacies of actual gay people.
Roman emperor Elagabalus: āI really, really love dickā
Modern wokes āAh, that makes you transgender in our history booksā
